Asset management

Last updated: 09 July 2025

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Key points

DO designate Asset Management roles in line with the established requirements for delegation of authority and segregation of duties to ensure proper management, utilization, and safe custody of assets. Within the operations this may be adapted based on the staffing structure of the office, noting that smaller operations with limited capacity may seek the support of regional bureaux in handling asset management tasks
DO NOT procure UNHCR Assets outside the Cloud ERP procurement process flow. The use of commitment documents is mandatory for acquisition of goods and services. In simple terms, the “No PO no Pay” approach is strictly enforced. Always issue an approved PO in Cloud ERP
DO ensure that the Asset Register in Cloud ERP is correctly maintained and kept up to date in accordance with instructions in the AI on Asset Management
DO make sure that appropriate documentation is used for providing assets to funded and non-funded partners
DO mind that ineffective asset management can lead to various negative consequences including; a) inefficient use of funds, b) incorrect data recorded, c) poor decisions, d) significant levels of excess, gaps, obsolete, and/or idle assets, e) safety risks, and e) damage and losses for UNHCR affecting forcibly displaced and stateless persons

Overview

Assets include property, plant and equipment (PPE), inventories, intangible or monetary assets, low valued tracked items (LVTIs) and consumables. This Entry addresses only the management of PPE and LVTIs.

All UNHCR assets must be procured following UNHCR procurement rules, procedures and processes described in the Administrative Instruction on Procurement, and an approved PO must be issued in Cloud ERP. PPE and LVTIs should not be acquired using the Expense Claim module of Cloud ERP.

An Asset Register is maintained in Cloud ERP within the Fixed Asset module, with the purpose to provide a centralized platform for accounting and tracking all recorded assets over their life cycles. The Fixed Asset module is configured to ensure appropriate accounting treatment of UNHCR assets for IPSAS reporting and other financial reporting purposes in an automated manner.

Relevance for emergency operations

In line with the Policy on Emergency Preparedness and Response, operations should consider the following principles:

Emergency preparedness measures should include identifying the responsibilities for asset management in accordance with section 11 of the AI on Asset Management. This is to avoid instances of assets acquired during emergencies not being recorded, and consequently being exposed to misappropriation or misuse;
Operations preparing a response to an emergency must coordinate with Asset Management Unit (AMU) of DFAM and with DESS to identify assets that could be obtained from the central pools of assets or through redeployment from other operations;
The asset planning strategy (scale up and scale down) should, from the beginning of an emergency declaration, include planning for a post-emergency declaration period including asset management. This is to avoid substantial asset build-up and subsequent under-utilization after the emergency response period, especially assets on loan to partners.

Main guidance

Definitions

UNHCR assets include property, plant and equipment (PPE), inventories, intangible or monetary assets, low valued tracked items (LVTIs) and consumables. This Entry addresses only the management of PPE and LVTIs:

• Tangible – also named Property, Plant, and Equipment (PPE) – those assets that meet the capitalization criteria under UNHCR's Accounting Policy Framework; and

• Low Value Tracked Items (LVTIs) – those assets that do not meet the capitalization criteria but represent important resources for the organization and are thus tracked and registered by UNHCR for accountability and internal control purposes.

PPE, are items for example vehicles, ICT equipment, generators, with a cost or fair value in excess of defined thresholds; and buildings and major improvements to owned or leased buildings situated in certain locations, with a cumulative cost or fair value in excess of defined capitalization thresholds. Capitalization thresholds for tangible assets are the following: a) US$ 10,000 for all tangible assets, except land, buildings, and major leasehold improvements; b) US$ 250,000 for land, buildings, and major improvements to owned or leased buildings, or for which the right of use has been granted to UNHCR, situated in main locations of UNHCR headquarters, UNHCR regional bureaux or UNHCR’s (multi-) country offices. PPE are subject to depreciation over their useful life.

LVTIs are specific categories of items held for long term use, but whose value at the time of acquisition or donation falls below the threshold value (cost) established by UNHCR for accounting capitalization. Typically, these are items such as smaller generators, computers, laptops and mobile phones. When delivered to a controlled warehouse, LVTIs are accounted for as inventory until they are either externally distributed and expensed accordingly or are put into use, at which time they are created as assets and immediately depreciated. Due to their attractive nature and related high risk of loss or theft, these assets require tracking for accountability and operational purposes.

Managing

All UNHCR assets must be procured following UNHCR procurement rules, procedures and processes described in the Policy on Procurement and Administrative Instruction on Procurement, and an approved PO must be issued in Cloud ERP. Selecting the appropriate procurement categories when establishing or updating frame agreements—as well as in related requisitions and purchase orders—is essential for the accurate classification, accounting, and effective management of the goods and services procured by UNHCR. PPE and LVTIs should not be acquired using the Expense Claim module of Cloud ERP. UNHCR vehicles are procured by GFM (Global Fleet Management) or with GFM endorsement (in case of local procurement).

Authorizing Officers¹ are responsible for designating UNHCR personnel to the different roles, in line with the established requirements for delegation of authority and segregation of duties to ensure proper management, utilization, and safe custody of assets.

^{1 “Authorizing Officers” are the Regional Bureau Directors, Representatives, Heads of Office, Division Directors or Heads of Entities at Headquarters.}

Functional Role	Responsibility
Goods/Services Receiver	Confirms in Cloud ERP that assets were received and were in accordance with the specifications, enters PO receipts, serial numbers, and tag numbers, as required.
Asset Focal Point	Ensures day to day overall asset management (including issuing assets to custodians), tracks and maintains asset information (custodian, location, transfer, derecognition, retirement, etc.) in the Asset Register; ensures proper documentation/comments are attached and recorded in Cloud ERP. The Asset Focal Point must not be responsible for carrying out the physical verifications of assets.
Asset Verifier	Designated by the Authorizing Officer to carry out the annual PPE physical verification, periodic LVTI verifications, and any impairment reviews. The Asset Verifier cannot be the Asset Focal Point or anyone who is supervised by the Asset Focal Point.
Custodian	Individuals who are assigned UNHCR assets to enable the performance and execution of their official duties and responsibilities are fully responsible for exercising due care and diligence in the use of assets. All UNHCR personnel hold such responsibilities and may be held liable for losses resulting from gross negligence.
Asset accountant	Role is performed by the Global Asset Management Unit in DFAM/GMIS.
Regional Asset Focal Point	Provides coordination between countries in the region for AM activities (e.g., Physical Verification).

Assets are issued to UNHCR personnel in support of their official duties and must generally be used for official purposes. Use of UNHCR Assets for private purposes is prohibited unless exceptionally allowed by respective UNHCR policies.

Recording

An Asset Register is maintained in Cloud ERP within the Fixed Asset module, with the purpose to provide a centralized platform for accounting and tracking all recorded assets over their life cycles. The Fixed Asset module is configured to ensure appropriate accounting treatment of UNHCR assets for IPSAS reporting and other financial reporting purposes in an automated manner.

All assets procured by UNHCR and released for use are recorded in the Asset Register in Cloud ERP by the Asset Management Unit in DFAM/GMIS.

Fixed assets are recorded and tracked in the Asset Register in Cloud ERP as capitalized items and are included in UNHCR’s financial statements. LVTIs are also capitalized and tracked like fixed assets in the Asset Register in Cloud ERP but are depreciated 100% in the first full month of use.

All UNHCR assets must be procured by issuing an approved PO in Cloud ERP. PPE and LVTIs should not be acquired through using the Expense Claim module of Cloud ERP. UNHCR Assets must not be procured outside the Cloud ERP procurement process flow.

Assets may be received as contributions in-kind as described in Section 9 of UNHCR’s Accounting Policy Framework as well as Administrative Instruction on Procedures for Accepting and Formalizing Donor Contributions.

Administering and Maintaining

When fixed assets – including LVTIs – are received from the supplier, as part of the “Put Away“ process, each item is assigned a barcode label which is then physically affixed to the item. This barcode number (also known as tag number) serves to identify an asset throughout its life cycle until it is disposed of. It is important that an emergency operation obtains a sufficient stock of such barcode labels for the registration of all assets. Upon request, DFAM-AFMS issues batches of barcode labels and arranges delivery of these to the given operation.

The Asset Focal Point is responsible for assigning assets to UNHCR personnel (referred to as the “Custodian”). Any change in custodianship of an asset must be properly documented and communicated to ensure smooth transition of responsibilities and accountability. The change shall be promptly reflected in the Asset Register in Cloud ERP by the Asset Focal Point.

For Assets under Right of Use (RoU) Arrangements and under Transfer of Ownership Agreements, please see the Guidance Note: Documentation for providing assets to funded and non-funded partners and Section 7.4 and 7.5 of the Administrative Instruction on Asset Management.

UNHCR operations must review on an ongoing basis any shortage or excess of assets, compared to its operational requirements.

Verification and Reporting Requirements

All operations must verify the quantities and condition of UNHCR assets periodically to ensure that assets held by UNHCR are properly safeguarded and to confirm the accuracy of the asset records in the Asset Register.

Detailed instructions outlining the verification and reporting requirements for each asset type can be found in Section 8 of the Administrative Instruction on Asset Management.

Disposal

The decision to dispose of a UNHCR asset should consider the actual condition of the asset, cost-benefit analysis as well as demonstrated requirements and continued needs of an operation. Prior to disposing of any item by means of sale, donation, or scrapping, the Authorizing Officer and the responsible regional bureau must verify and ensure that the asset cannot be efficiently, and cost effectively re-utilized within the operation or by another UNHCR operation.

Assets can be disposed of using different disposal options, i.e., through Transfer of Ownership, sale, scrapping, cannibalization, or quantity adjustments for loss, theft or discrepancy. The procedures and authorizations for the disposal of assets are defined in Annex 1 of the AI on Asset Management. It is important to note that the retirement of vehicles from Cloud ERP is exclusive to GFM and should not be executed by any other operation.

Complete audit trail with full documentation needs to be ensured.

As a general rule, UNHCR personnel and their immediate family members are excluded from participation in any type of sales process with the only exceptions being online auction of assets and the direct sale to a staff member of LVTIs which had been previously assigned for “individual use” and is restricted to specific situations namely, in case of separation or retirement. This AI on Asset Management doesn’t allow for such sale to Affiliate workforce, however, there is a temporary exception applied for AWF until the end of 2025 through PR/2025/01 Procedures to Monitor Financial Commitments and Optimize Cash Flow.